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PRESENTATION
ON
PESTLE ANALYSIS
PRESENTED BY GROUP ‘B’
GROUP MEMBERS
1.AMIT KUMAR SHAH
2.KABITA ADHIKARI
3.NIROSE CHANDI SHRESTHA
4.ROSHAN ACHARYA
5.SUMAN DHAKAL
INTRODUCTION
• A PESTEL analysis is tool used to identify the macro (external)
forces facing an organization.
Components
• Key political factors (P)
• Important economic factors (E)
• Socio-Cultural Factors (S)
• Technological Factors (T)
• Environmental Factors (E)
• Legal Factors (L)
ORIGIN
Throughout the 1980s
STEEPLE PESTLE PEST respectively
STEPE
Arnold Brown
STEP
Francis J. Aguilar (1967)
ETPS
POLITICAL FACTORS
• Employee protection
• Consumer protection
• Competition protection
• Political Stability
• Political System
• Free markets or government
controls
ECONOMIC FACTORS
• Economic growth
• Taxation international trade
• Exchange rate
• Inflation and
Unemployment
• Interest rate
• Buying power
• Business cycle
SOCIO-CULTURAL
• Population Growth
• Gender & Ethnic Diversity
• Job security
• Differing consumer Taste
• Economic Disparity
• Cultural Diversity
TECHNOLOGICAL FACTORS
• Impact of technology Transfer
• R&D Activity
• Impact of Emerging
Technologies
• Digitization
• Computer Hacking Activities
• Telecommunication
Infrastructure
ENVIRONMENTAL FACTORS
• Geographical location
• Climate change
• Disposal of waste material
• Energy availability and
consumption
• Recycling procedures
• Limited natural resources
• Attitude towards environment
LEGAL FACTORS
• Employment law
• Intellectual Property Rights
• Health and Safety
• International trade barriers
• Taxation
• Anti Trust Laws
• Consumer Protection and E-
Commerce
• Competition Law
IMPORTANCE• Identifies the influence of government policies
• Keep track of competitors pace and their new market
strategies
• Business or product development
• Cost effectiveness
• Strategic planning.
• Marketing planning
• Identifies the risk and volatilities in the market
• Recognizes opportunities and threats supposed to be faced
S.N Advantages Disadvantages
1. Simple and easy
framework
Cost and time restriction
2. Cross-functional Skills
and expertise
Lead of assumption rather
than factual data
3. Reduces the impacts
and effects of potential
threats
Users can oversimplify the
information
4. Identifies and exploit
new opportunities
Need of continuous and
regular process
5. Enables to assess
implications of entering
new markets
Paralysis by Analysis
ALTERNATIVES OF PESTLE
ANALYSIS
• PEST Analysis (STEP Analysis)
• PESTLIED Analysis
• STEEPLE Analysis
• SLEPT Analysis
• STEPE Analysis
• ETPS Analysis
CONCLUSION
• Commonly used technique
• Gives complete view of market scenario
• Proper use of PESTLE analysis leads organization
towards sustainable growth
PESTLE Analysis

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PESTLE Analysis

  • 1. PRESENTATION ON PESTLE ANALYSIS PRESENTED BY GROUP ‘B’ GROUP MEMBERS 1.AMIT KUMAR SHAH 2.KABITA ADHIKARI 3.NIROSE CHANDI SHRESTHA 4.ROSHAN ACHARYA 5.SUMAN DHAKAL
  • 2. INTRODUCTION • A PESTEL analysis is tool used to identify the macro (external) forces facing an organization. Components • Key political factors (P) • Important economic factors (E) • Socio-Cultural Factors (S) • Technological Factors (T) • Environmental Factors (E) • Legal Factors (L)
  • 3. ORIGIN Throughout the 1980s STEEPLE PESTLE PEST respectively STEPE Arnold Brown STEP Francis J. Aguilar (1967) ETPS
  • 4. POLITICAL FACTORS • Employee protection • Consumer protection • Competition protection • Political Stability • Political System • Free markets or government controls
  • 5. ECONOMIC FACTORS • Economic growth • Taxation international trade • Exchange rate • Inflation and Unemployment • Interest rate • Buying power • Business cycle
  • 6. SOCIO-CULTURAL • Population Growth • Gender & Ethnic Diversity • Job security • Differing consumer Taste • Economic Disparity • Cultural Diversity
  • 7. TECHNOLOGICAL FACTORS • Impact of technology Transfer • R&D Activity • Impact of Emerging Technologies • Digitization • Computer Hacking Activities • Telecommunication Infrastructure
  • 8. ENVIRONMENTAL FACTORS • Geographical location • Climate change • Disposal of waste material • Energy availability and consumption • Recycling procedures • Limited natural resources • Attitude towards environment
  • 9. LEGAL FACTORS • Employment law • Intellectual Property Rights • Health and Safety • International trade barriers • Taxation • Anti Trust Laws • Consumer Protection and E- Commerce • Competition Law
  • 10. IMPORTANCE• Identifies the influence of government policies • Keep track of competitors pace and their new market strategies • Business or product development • Cost effectiveness • Strategic planning. • Marketing planning • Identifies the risk and volatilities in the market • Recognizes opportunities and threats supposed to be faced
  • 11. S.N Advantages Disadvantages 1. Simple and easy framework Cost and time restriction 2. Cross-functional Skills and expertise Lead of assumption rather than factual data 3. Reduces the impacts and effects of potential threats Users can oversimplify the information 4. Identifies and exploit new opportunities Need of continuous and regular process 5. Enables to assess implications of entering new markets Paralysis by Analysis
  • 12. ALTERNATIVES OF PESTLE ANALYSIS • PEST Analysis (STEP Analysis) • PESTLIED Analysis • STEEPLE Analysis • SLEPT Analysis • STEPE Analysis • ETPS Analysis
  • 13. CONCLUSION • Commonly used technique • Gives complete view of market scenario • Proper use of PESTLE analysis leads organization towards sustainable growth